- Investor sells CryptoPunk NFT for $6 million, incurring a $9.7 million loss.
- NFT market sees significant decline in trading volumes and valuations.
What happened: Major NFT loss amid market downturn
An investor recently sold a CryptoPunk non-fungible token (NFT) for 4,000 Ether (ETH), valued at over $6 million at the time of sale. The NFT was originally purchased for 4,500 ETH, approximately $15.7 million, a year prior. This transaction resulted in a realised loss of about $9.7 million.
The sale occurred amidst a broader downturn in the NFT market, with Ethereum-based NFT trading volumes declining by more than 53% over the past month. Despite the loss, this $6 million transaction remains the largest NFT sale in the past 30 days.
Also read: Binance stops bitcoin NFT support to streamline offerings
Also read: BlackRock obtains memecoins, NFTs following $100M USDC deposit
Why it’s important
This significant loss highlights the volatility and risks associated with investing in NFTs. The decline in trading volumes and valuations suggests a cooling interest in the NFT market. Investors and market participants are closely monitoring these trends to assess the future viability and stability of NFT investments.
